Ann: Elemental Successfully Completes A$3.1M Shar, page-17

re: Ann: Elemental Successfully Completes A$3... What are you guys on about? Generally when companies raise money through sophisticated investors…..they have to sell them shares at a discount…..here we sold them at a PREMIUM…

A sophisticated investor is one who buys $500k+ of shares. The advantage going through them to raise money vs us or other avenues is that it’s a lot cheaper as you don’t’ have to issue a prospectus etc and there is a lot less costly regulation / fees….As these investors are “sophisticated” / have access to financial advisors etc…..they are deemed to be able to make a decision like this with the need to have a full prospectus which explains out all the risk’s to them….

Surely it’s a great thing that ELM could so quickly raise money at a premium to the market? Also now if Dingyi want us to pay them out on their convertible loan later this month…..we have the cash ready for it!